Warning! Silent Hill 2 Game Spoilers!
As for Pyramid Head, he didn't really have any point in the movie but as a fan of the games, I'm sure Gans just had to put him in anyway. In SHII, he (Pyramid Head, not Gans

) is often thought to be a figment of James' imagination to symbolically punish him for killing his wife. That is true, but I would say he was a
manifestation of James' guilt and not self-punishment and not just an imaginary figure - as real as anything else in the world of Silent Hill. Also, Maria was actually a demon which manifested itself as James' ideal image of Mary if she had been hot and not dying of a degrading disease - she wasn't just a imaginary figure either.